Dell finally got its non-compliance letter from Nasdaq making a delisting at least a possibility. The SEC, Justice Department have all been looking into accounting irregularities at the big PC maker.
There is already a great deal of talk about the possibility of replacing Dell’s CEO, Kevin Rollins, and the delisting issue does not make his position any easier.
Dell’s stock has actually held up remarkably well. It trades at $26.50 on a 52-week high/low of $33.06/$18.95. The recovery in the stock from its lows puts it down about 20% over the last year. Stock in rival HP is up over 30% for the same period.
Dell needs some good news. Its next quarter will be critical. If the numbers are not good, the market’s small amount of faith in the company is going to erode further and the stock could certainly test $19 again.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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